Topics: Delta/Comair, Denver, Embraer, Mesaba, BAe, ATR
Delta Emerges Today
Delta (DALRQ) is set to emerge from its bankruptcy cocoon today, April 30, after its bankruptcy court confirmed it reorganization plan. The company is now working on closing conditions including the $2.5 million in exit financing. The move also confirms plans for its subsidiaries including Comair and Delta Connection Academy. Once it emerges, its common stock will have the ticker symbol DAL on the New York Stock Exchange with trading launched on May 3.
Comair debtors are expected to get a lower percentage distribution at this time owing to significantly higher number of disputed claims that remain outstanding. Thus, a person holding a general unsecured claim of $10,000 against Comair (in Comair Class 4) would receive an initial distribution of approximately 139 shares. A total of 27,213,420 shares will ultimately be distributed for to creditors in Comair Class 4 under the Plan. Someone holding a general similar unsecured claim against Delta will receive an initial distribution of about 225 shares of new common stock.

Denver May Expand For Regional Aircraft
Having opened its new United Express (UAUA) facility on the B Concourse, Denver International Airport may add a similar facility to its C Concourse to handle regional jets and turboprops. The cost is expected to be between $40 million and $50 million and would add the same number of gates – 16 – as that at the new United Express facility. As part of the update to its master plan, the airport is already moving to add 10 more gates to C Concourse and the proposed regional aircraft center would be in addition to that. The construction would happen simultaneously, should Denver decide to proceed and would be at least three years out before it is completed. It may include the possibility for regional carriers to enplane and deplane through jet bridges. The proposed facility could house regional partners for American (AMR), Delta (DALRQ) and Northwest (NWACQ), Midwest Airlines (MEH) all of whom use C Concourse, along with Big Sky.

It’s Official at Embraer
With the completion of a planned succession process, Embraer's (ERJ) Board of Directors last Monday elected Frederico Fleury Curado as Embraer's new President and CEO. Mauricio Botelho will stay on as Chairman of Embraer's Board of Directors. The meeting of the Board of Directors was preceded by a general shareholder's meeting and a special shareholder's meeting, with a quorum representing more than 75 percent of the total company shares. At the same time, Mauro Kern, Jr. took over the position of Executive vice-president, airline market, replacing Curado. Furthermore, Antonio Julio Franco and Flavio Rimoli were inducted as executive vice-president of organizational development and executive vice- vresident, legal counsel, respectively. Finally, Edson Carlos Mallaco, senior vice-president, aviation services, now reports directly to the President and CEO.

Done Deal
Mesaba, formerly part of MAIR Holdings (MAIR), is officially a subsidiary of Northwest having emerged from bankruptcy Tuesday, April 24. Mesaba is to receive a $145 million claim against its new parent company, which expects to emerge from its own bankruptcy latter this year. The move ends Mesaba’s 18-month-old fiscal brinksmanship during which Northwest halved its 100-aircraft fleet. The new relationship will add 36 new 76-seat Bombardier CRJs to the regional’s fleet of 49 Saab 340s and one CRJ200 and could be the recipient of the jets Northwest is taking back from Pinnacle (PNCL). Mesaba has been an Airlink partner for 22 years. Mesaba’s former parent – MAIR – is expected to get between $30 million and $50 million for its creditors. Mesaba is now expected to re-hire more than 700 furloughed employees as well as add new employees. The regional also has a new slate for its board which now includes four Northwest executives – Neal Cohen, James Cron, Davis Davis and Andrew Roberts.

Airlink Takes BAe 146s
South African-based Airlink acquired three BAe 146-200s from BAE Systems Regional Aircraft enabling it to introduce new routes, replace older leased equipment on some of its services and to offer more seats on its most saturated routes. Delivery of the first two aircraft is set for this month with the remaining aircraft due to follow later in the year. All aircraft will be configured in a four and six-abreast business/economy layout with seating for up to 89 passengers. With its newly acquired aircraft, Airlink will launch flights from Johannesburg to Lusaka, Zambia and Harare, Zimbabwe and replace a wet-leased Boeing 737 on Airlink’s services linking Johannesburg with Antananarivo and Nosy Be in Madagascar and Pemba in Mozambique. Airlink will also upgrade its current Embraer (ERJ) ERJ-145 service between Johannesburg and Ndola, Zambia, with the BAe 146. In addition, the BAe146s will replace the ERJ-145 on some peak time domestic sectors, including Johannesburg-Nelspruit, allowing for additional capacity at times when O.R. Tambo International Airport is slot-restrained.
Johannesburg-based Airlink currently operates 15 29-seat Jetstream 41 turboprops – the world’s second largest J41 fleet, two of which are leased to Mozambique Express. The airline also flies five Embraer ERJ-135 regional jets. Airlink is a South African Airways alliance partner and currently operates more than 3,500 flights, carrying about 65,000 passengers per month of which 80 percent are business travellers. It provides feeder services connecting smaller South African centers with the major hubs at Johannesburg and Cape Town. Airlink also serves more than 20 South African destinations.

Swiftair Takes Three ATRs
Madrid-based Swiftair contracted for three new ATR 72-500s for a total value of about $55 million. The airline, which currently operates 16 ATR aircraft, is now adding to its fleet for the first time the new -500 series ATR aircraft. Swiftair plans to operate 30 ATRs in 2010. These three aircraft, configured with 68 seats, will be delivered in December 2007 and by mid 2008. Swiftair is one of the largest ATR operators in Europe, and decided on the three new aircraft to cope with the increasing demand of charter contracts. Madrid-based Swiftair was founded in 1986 and started its operations with a single Metro II on cargo and passenger routes within the Iberian Peninsula. During the nineties, the airline increased its fleet and expanded its operations to Europe and Middle East. Swiftair posted € 84 million revenues in 2006 and counts 35 jet and turboprop aircraft.